TAMPA, Fla. — It's no secret, a lot of people in Florida have seen their flood insurance policies increase.
With a change at the federal level, Floridians are expected to see their federal flood insurance premiums continue to go up.
The good news, there is a cap for the rate increase. There are limits that most rate increases can't increase more than 18 percent per year. Insurance experts explained, that means those seeing increases shouldn't see an astronomical jump, but rather, increases over the next few years.
Mark Friedlander who works for the Insurance Information Institute explains the latest increases are due to a change in how the Federal Emergency Management Agency calculates a homeowner's policy.
Federal officials are now using a system called Risk Rating 2.0. Friedlander explains this determines a homeowner's policy based on risk value factors. Those factors are dependent on replacement costs.
"It doesn’t mean every home in that county is going to see the same rate increase," Friedlander stated.
He used an example relating to auto insurance. Depending on the type and price of a car, that will depend on how much it costs to replace and repair. It's the same with flood insurance. People have different home values and risk factors, like if they're located near a body of water.
Friedlander believes the new system FEMA is using will be more precise on what each homeowner should pay depending on the house they live in.
FEMA's data shows 15 percent of homeowners in Hillsborough and Pinellas counties will stay at the same premium or see a decrease in what they're currently paying.
On the other hand, 62 percent of homeowners in Hillsborough County will see an increase of $10 or less per month.
One zip code in Hillsborough County, 33621, will have one of the highest increases in the entire state.
10 Tampa Bay talked to a woman who lives in that zip code. She lives close to MacDill Air Force Base. She said her parents have owned the home for more than 30 years and just recently their flood insurance went from $3,000 to $5,000.
FEMA's data shows 90 percent of her zip code will be seeing an increase in their premiums. It's something those living there say, they're struggling to afford.
"Don’t put our people out because we can’t afford it. Don’t make it so high so we can’t afford it. What’s happening is just insane right now," Siobhan Brown said.
Friedlander wants those like Brown to understand in Florida it's likely flood insurance premiums will continue to increase. He says it's highly unlikely we will see prices go down due to the catastrophic weather storms we experience.
With that, he wants people not to panic and to remember, while there are going to be price increases, there is a cap in place to make sure they're not extreme all at once.
For more information about the price increases in the Tampa Bay area, there is an online tool you can use to look up your zip code.
Friedlander recommends homeowners shop private insurance companies and get at least three quotes before choosing a policy.